Interest rates change over time depending on market conditions. They are a popular monetary tool in helping to stimulate the environment in times of economic difficulty or to contract the money supply in times of high inflation.
The last few years of a global pandemic created unique situations for all countries attempting to prevent their economies from collapsing. Therefore, they are adjusting their monetary policies to suit the times. The following are the five countries with the lowest interest rates as of Aug. 11, 2023.
The Swiss National Bank reported an unchangedbenchmark of a three-month SARON of -0.75%. Inflation, based on the Consumer Price Index, for 2023 was 1.6% increase versus 2022. GDP growth prediction for 2023 is 0.6% and 1.2% in 2024, due to slower demand due to the Ukraine war. As of Aug. 11, 2023, Switzerland is holding the policy interest rate at 1.75%.
2. Denmark
The primary interest rate in Denmark is the certificate of deposit rate set by the Central Bank of Denmark. As of Aug. 11, 2023, the interest rate is -3.35%. As of August 2023, based on the Consumer Price Index, inflation was 3.1% higher versus last year.
The Bank of Japan reported an unchanged negative interest rate of -0.1%. The government will increase its purchasing of riskier assets and corporate bonds to reduce economic damage.
Interest rates are always set by a country's central bank unless they are part of a specific union, in which case the central bank of that union will determine the rate.
The government is also offering loans against corporate debt as collateral with rates set at 0%. Japan's inflation rate in Aug. 2023 was 2.73%
4. Sweden
The central bank of Sweden reported a benchmark interest rate of3.75%, as of Aug. 11, 2023. The main interest rate in Sweden is the repo rate; the rate at which banks can borrow from the central bank for seven days.
Sweden's interest rate was increased from 0% in Jan. 2020 to 3.75% in August 2023. As of June 2023, Sweden's CPIF (Consumer Price Index with a fixed interest rate) rate was 6.4% while the target was 2%.
5. Spain
Spain is part of the Eurozone, so its interest rate is set by the European Central Bank. The current rate for Spain is set at 4.25%, its rate for the last four years. This is the same rate for the entire eurozone. As of May 2023, Spain's inflation rate was estimated to be 6.1%.
FAQs
“The saga of ultra-low interest rates in Japan reflects the fact that the Japanese economy suffered from secular stagnation and also from mild but persistent deflation for the past 20 years.
Which countries have lowest interest rate? ›
Sweden, which was the first country to try negative interest rates, also currently has an interest rate of 0%.
- Switzerland. Switzerland's interest rate currently sits at -0.75%. ...
- Denmark. The Central Bank of Denmark has set the primary interest rate in Denmark to -0.60%, an increase from its previous -0.75% rate. ...
- Japan.
Top 5 countries with the lowest mortgage rates
| Ranking | Country | Average fixed mortgage rate, % |
|---|
| 1 | Japan | 1.68 |
| 2 | Switzerland | 1.75 |
| 3 | Finland | 1.83 |
| 4 | Germany | 1.90 |
1 more row“The saga of ultra-low interest rates in Japan reflects the fact that the Japanese economy suffered from secular stagnation and also from mild but persistent deflation for the past 20 years.
What is the lowest interest rate in the US? ›
The average 30-year fixed rate reached an all-time record low of 2.65% in January 2021 before surging to 7.79% in October 2023, according to Freddie Mac.
Which is the lowest interest rate? ›
Lowest interest rates charges by banks on their personal loans:
- Karur Vsya Bank:Interest rate on secured loan is 11 percent per annum and 13 percent per annum on unsecured personal loans. ...
- Yes Bank: Yes Bank charges an interest rate that starts with 10.49 percent per annum. ...
- Milestone Alert!
China Loan Prime Rate is at 3.45%, compared to 3.45% last month and 3.65% last year. This is lower than the long term average of 3.77%.
Which countries have 30-year fixed mortgage rates? ›
The United States is unique in that it is the only country in the world that has as its primary mortgage offering the 30-year fixed rate mortgage.
Which country has a 30-year fixed mortgage? ›
The U.S. is the only country where a 30-year fixed rate mortgage is standard, and is the result of government policy to encourage home ownership.
Which country has the highest mortgage interest rates? ›
Latvia. Latvia ranks among the countries with the highest mortgage rates. Latvia recorded a mortgage rate of 7.75% as of September 2023. The average mortgage rate in Latvia between January 2004 and September 2023 was 5.3%.
With ordinary Treasury bonds, people lend money to the U.S. government, but when they get their money back (with interest), each dollar they receive is worth less because of inflation. Thus, adjusting for inflation, the real rate of interest they receive is less than the nominal, or dollar, rate of interest.
What is the interest rate in Switzerland? ›
Switzerland becomes first major economy to cut interest rates in surprise move. The Swiss National Bank on Thursday surprised the market with a decision to lower its main policy rate by 0.25 percentage points to 1.5%.
What are the UK interest rates? ›
Bank Rate is currently 5.25%.
Which US state has the highest interest rate? ›
The study revealed that the average interest rate across all 50 states was 4.84%, with the lowest being 4.74% and the highest 4.96%. California, New Jersey, Washington and Massachusetts had the lowest average interest rates, while New York, Iowa and Arkansas had the highest.
What is a good credit score? ›
There are some differences around how the various data elements on a credit report factor into the score calculations. Although credit scoring models vary, generally, credit scores from 660 to 724 are considered good; 725 to 759 are considered very good; and 760 and up are considered excellent.
Which US Bank has highest interest rate? ›
Best High-Yield Savings Account Rates
- Evergreen Bank Group – 5.25% APY.
- CFG Bank – 5.25% APY.
- Upgrade – 5.21% APY.
- EverBank (formerly TIAA Bank) – 5.15% APY.
- RBMAX – 5.15% APY.
- Bread Savings – 5.15% APY.
- Popular Direct – 5.15% APY.
- Western State Bank – 5.15% APY.
The Swiss central bank said that it was cutting the interest rate because inflation was retreating. The easing by Switzerland, its first in nine years, comes as the Bank of England kept interest rates steady and a day after Federal Reserve officials also kept rates unchanged.
Which country has highest interest rate? ›
20 Countries with Highest Interest Rates in 2024
- Egypt. ...
- Liberia. ...
- Pakistan. ...
- Sierra Leone. Latest Interest Rate (January 2024): 22.25% ...
- Iran. Latest Interest Rate (December 2023): 23% ...
- Malawi. Latest Interest Rate (December 2023): 24% ...
- Congo. Latest Interest Rate (January 2024): 25% ...
- Sudan. Latest Interest Rate (February 2023): 28.3%
The Fed lowers interest rates in order to stimulate economic growth, as lower financing costs can encourage borrowing and investing.
What country has the highest real interest rate? ›
As of March 2023, Brazil has the highest real interest rate among the 40 major economies shown in this dataset.
